Consumer Awareness – Protecting Yourself from Fraud
About a week ago, I received a letter from a vendor I had purchased from informing me that their servers were hacked and a lot of information was stolen, including sensitive credit card information from all customers who made purchases between September and November. As you can probably guess, I had made purchases during that time and my information was out in the ether, probably available to the highest bidder on the virtual black market. I immediately checked my bank statements again to make sure that there weren’t any fraudulent charges and luckily everything looked fine. As a precaution, though, I went to my bank, told them about the letter I received, and asked to have my current ATM-Debit card cancelled and to be issued a new one.
In the past three years, I’ve had to do this twice due to these issues, and I imagine that I will be forced to do the same in the near future as these problems become more prevalent. The thieves of the future will not be stealing at gun-point, but with advanced algorithms that take advantage of weaknesses in virtual security setups.
So what do we do to protect ourselves? In cases like the one I’ve recently dealt with, there really isn’t too much that can be done–at least on the part of the consumer. Companies need to evolve along with the new criminal methods to make sure that their customers can be protected. For the most part, they’re doing a decent job, but there is no time to sit back on their laurels. They need to constantly monitor themselves and make their security stronger.
Where we can protect ourselves are at places like ATMs and online vendors. ATM machines have become new targets for thieves who use devices called card skimmers. These devices act as an overlay for the slot where you slide in your card and skim the magnetic strip on the back before it goes into the machine. A small pinhole camera installed in the overlay takes a video of your pin number, and the innards of a cell phone that have been squeezed inside send that information wirelessly anywhere in the world. The criminals who install these skimmers have gotten increasingly smart and can produce very accurate overlays that can even fool the banks who maintain the machines. The best way to avoid this type of fraud is to either go into the bank and get your cash from a teller, or get your cash when you shop at stores that offer cash back on debit purchases. The latter is also a great way to avoid ATM fees as well.
As for online purchases, only make purchases from verified vendors who have a good reputation. If possible, call them to make your purchases rather than entering your information on their website if you’re unsure.
While there are now risks that exist that we didn’t have to worry about before, there are ways we can protect ourselves against them to minimize how exposed we are to those risks. Quick action when fraud is caught is crucial, so if you think that something is wrong, call your bank right away.
Shop safe, shop smart, and have fun.